uploads///Rating changes

Which Gold Miners Did Analysts Warm Up to in the First Half?

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Jul. 9 2018, Updated 7:30 a.m. ET

Ratings changes in NEM and ABX

On June 12, Morgan Stanley upgraded Newmont Mining (NEM) from an “equal-weight” to an “overweight” and raised its target price to $40 from $37. The brokerage cited stronger execution, a steadier production profile, a stronger project pipeline, a better reserve life, and lower leverage as the main reasons for its preference of NEM over Barrick Gold (ABX).

On April 11, Deutsche Bank boosted NEM’s target price from $40 to $41.

On March 12, RBC downgraded Newmont Mining (NEM) to an “underperform” from a “sector perform,” and cut NEM’s stock price by $1 to $43. The company believes that while NEM has executed its business plan well, it might be time to take profits in the stock after its recent rally.

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On June 12, Morgan Stanley downgraded Barrick Gold (ABX) from an “equal-weight” to an “underweight.” Morgan Stanley analyst Piyush Sood switched to market valuation from net asset value for ABX’s Tanzanian operations. The analyst also believes that the stock’s underperformance will continue throughout the rest of the year ahead of its final agreement with the government of Tanzania.

Canaccord Genuity downgraded ABX from a “buy” to a “hold” on April 23.

Goldcorp and Kinross

Canaccord Genuity upgraded Goldcorp (GG) from a “hold” to a “buy” on April 23. Prior to this upgrade, GG’s rating change came from TD Securities, which upgraded GG stock from a “buy” to an “action list buy” and increased the stock’s target price from $20 to $22.

There hasn’t been a major analyst rating change for Kinross Gold (KGC) since April. However, several analysts have changed their target prices for the stock. RBC reduced its price target for KGC from $5.5 to $5.0 on May 15. Scotiabank cut its price target for Kinross from $5.0 to $4.75 on May 10.

On April 4, BMO Capital Markets downgraded Kinross Gold from an “outperform” to a “sector perform.”

Yamana and Agnico Eagle Mines

Yamana Gold’s (AUY) number of “buy” ratings improved to its current level of 69% from 50% at the end of March. In April and May, Yamana saw upgrades from National Bank Financial, GARP Research, and GMP Securities.

BMO Capital Markets upgraded Agnico Eagle Mines (AEM) from a “market perform” to an “outperform” on May 29.

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